I’m EXPOSED: My REAL Numbers (Profit Margins, AOV & More)

okay I'm a little nervous I sat down and I wasn't going to do this I'm literally not wearing makeup I'm in my disgusting sweat that I've been working in all day but I have a little bit of courage and I'm just going to do this I am doing essentially the equivalent of getting naked in front of everybody which is as a business owner sharing your actual hard numbers the non seexy actual like you show me yours I'll show you mine data and no one ever shares this but I would have killed to have this information especially not quite when I was a very beginner because when you're a beginner you don't even know these numbers you don't even know what to do with these numbers this is for people who are a little bit more advanced um who will know what these numbers mean and will be able to immediately compare my numbers to your numbers to see where maybe you're doing better than I'm doing and then to see where I'm doing maybe better than you are doing so this data that I'm sharing with you in case you don't know me by the way my name is mar went I run a multi-million dollar business I sell digital products I'm extremely good at business I'm extremely good at marketing I'm extremely good at sales um I make a ton of very transparent clearly vulnerable content online um because it's the information I wanted when I was getting started it's the data it's the um education it's just the trans honestly it's just the transparency when I was working to make my first million I would have given anything to see these numbers and occasionally in masterminds where I paid you know $30,000 20 $20,000 to be in rooms I would occasionally get glimpses of this data um I just want you to have this data for free here online to take it and use it and help you grow your really to hit your first seven figures or um maybe from like your first seven figures to like like 10 10 million I think is like it's still very helpful data to have so it probably won't make a ton of sense um if you're just getting started but maybe it will and if not maybe watch it and you kind of learn like what this looks like at at a higher level okay so the data that I've collected I'm going to assume that you know what each of these acronyms mean if you don't know what these acronyms mean you can go ahead and look it up um some of them I might just accidentally clarify what it means but I'm just going to assume that you know what these are um or if I feel like it will be helpful to clarify um I'll explain it and I'll also explain why it's important for you to have this is data over the last six months um I'm going to share profits I'm going to share um Revenue per email subscriber I'm going to share upsell an order bump take rate return on ad spend how much you're spending on ads I'm going to be sharing a ton of data with you um and I just want you to know this I just that's my only goal with this video is just to be transparent be like look these are my numbers where are you doing worse than I am and maybe I can teach you something and then maybe conversely if you're a peer of mine and you're watching this where are you doing better than I'm doing so I can learn from you like if you're like Maria like at the volume you have my conversion rate is way better than yours cool I want to learn something from you if your aov is better than I I want to learn something from you so okay I think the most important thing for you to understand about my business model my low ticket business model is that it runs on volume meaning you will not see the best conversion rates with my business you will not although I have decent conversion rates you will not see the best um there's just some things that are going to be less efficient as you scale um and and that's just a general rule of thumb is things you you will make in general the efficiency of something goes down when you throw volume into it so I'm a ticket business model um I'm I have literally hundreds of customers a day come in I think it's two or 300 customers a day I think it's $3,000 3,000 customers a month I don't have all the data here so we'll go we'll go over it but I basically have thousands of customers a month and that's how I run my business model so let's start with the most important this is the most important metric for you to track as a business owner and I think is my weakest one of my weakest numbers I think it's decent it's not great um and the reason why it's not great is because I'm running a low ticket business model so the con of a low ticket business model is that it the pro is that you don't have any work you set the funnels up once you set the automations up once and it's very little delivery the con is certain margins certain numbers are amazing but I'll kind of go over all of it because I think it's really important for you to have the full picture so LTV to CAC ratio I'm going to explain what that means in a minute but my LTV to CAC ratio is 2. 62 so slightly under three basically LTV to CAC ratio what that means is how much does a customer do I get per customer over the lifetime of that customer versus how much it costs me to acquire that customer so if let's just Round Up M's 2. 62 let's round up to three if it costs me a dollar to acquire a customer I will take that and turn that into $3 now every business has a very wide range that's what I would consider decent not Stellar um some businesses have an LTV to CAC ratio of 11 some businesses have a LTV to ca ratio of 1.

5 meaning they will take $1 and turn it into $150 I think the really important next metric is my current overall profit margin mind you this is over the last six months of data so this is data from the last six months um profit margin has been very steady at 60% so I'm taking $1 turning it into $3 and my profit on that $3 is 60% my profit margin is 60% so if I pull in just say for easy math I'm pulling in $500,000 a month but let's just say for easy math it's $100,000 a month I keep 60 of that 100,000 so my LTV toac ratio is three essentially it's 2. 62 so basically my lifetime value so so for me just sharing since you guys can like why are we doing this why are we talking about this my big opportunity is in increasing my lifetime value so getting my customers to buy for me which they already have we'll talk about this too later they already we already have great um ratio but for me just so you know what my focus on it's increasing that LTV even more um and if you're curious I'll I'll be sharing the actual dollar amounts of that later um but my opportunity is to increase the LTV of my customers that's my opportunity cash collected over the last 6 months has been 2. 7 million so slightly under 3 million um and that's right on track so in January so far this year we've done about 600,000 in February we did I think right about 500,000 I think in March we're going to do probably over 500,000 um definitely not under 500,000 I don't think we'll get quite to 600,000 um but in the last six months we collected 2.

7 million our overall return on ad spend is 2. 32 meaning if we spend a dollar on ads we'll make basically $2 and5 dollars so that's your return on ad spend now this is what I'm talking about where um your efficiency as you scale goes down so if you're just getting started with ads you might have a return on ad spend of five or you might have a return on ad spend of 10 where you spend $1 and you make $10 um a rule of marketing is that as you scale as you have volume your efficiency goes down our current daily ad spend is $6,000 a day it's actually not that much for someone who's brand new watching this you might be like are you kidding me $6,000 a day that's insane but we talk to people who are spending millions of dollars a day on ads and so that's like our metric is like our first immediate goal is to get that up to $110,000 a day because when you have profit immediately from your ads not everyone does we have an immediate profit from our ads and so when you have an immediate profit literally your constraint the thing that's throttling you is the amount you're spending because if I can spend um $110,000 a day I'm gonna take that $10,000 and I'm going to turn that into 23,000 right that's the how the math on that would work I think that's how the math on that if not leave a comment and tell me but I think it it would slightly double it so yeah if I put in 10,000 I would make around 25,000 so why wouldn't you do that every single day that's how our profit margins are really good um okay average cost to acquire a customer I think is pretty decent it's $61 so it costs us $61 Blended to acquire a customer now that's Blended when I say Blended that means if I take what I pay in ads and I take what I pay in organic and I combine the two and average it out and blend it that's my understanding I could be totally wrong I'm just talking out of my ass so if someone again this is where the vulnerability comes in if you know I didn't go to business school I don't know any of the business terms I've learned all of them on the fly as best as I could so if you know a better term or I'm using the term incorrectly and this just goes for all my YouTube videos like please please tell me I have no formal education doing this I have stubbled my way into a multi-million dollar business I don't pretend to know really anything that I that I I'm sure there's lots that I don't know so average CAC cost to acquire a customer $61 LTV meaning lifetime value is $160 and2 so that's how you get the 2. 62 ratio right where it's essentially like I'll take I cost me $60 to get a customer but on average I make about $160 from that customer so not great not Stellar decent it's categorized as decent um my average order value my AO is a meaning like average order value is like you have a customer come in and they buy from you what is the average order value of that customer my average order value is $17.

28 so the gap between my LTV 160 and my aov 117 isn't that much which means my opportunity is in getting my customers to buy again and again which let me just turn my phone and do not disturb here uh okay which that's the Gap I would love the thing that I'm working towards is I want an LTV of $400 meaning I want the lifetime value of my customers to be around 400 so I'll give you a different business example Starbucks LTV is 14 thou this is gonna make you sick if you buy from Starbucks not that I have anything political it's just more just like it's a lot of money to be spending on coffee it's $14,000 so Starbucks let's just say Starbucks had a customer acquisition cost of $61 like I do their LTV is $144,000 mine is $160 so that's my opportunity that's what they done really well again like it's different it's a different completely different business model because they're selling consumables I'm selling information um it's a totally different business model however I think we can all agree that my opportunity is in getting my LTV up there's a lot of different ways you can do that um and I'm working on like I'm clear on the plan for what that looks like um my immediate goal my first immediate goal is to get that to 200 like an LTV from 160 to 200 I love it that's good but my ultimate goal is I want $400 as my LTV okay this one's hard for me to share because I think that along with my LTV and my CAC ratio the other thing that my metric I think that it's hard for me to share and I'll tell you why is my clickthrough rate is across all my pages so not just my checkout Pages not just certain pages across every page with something like 300,000 page views per month maybe even four like we generate hundreds of thousands of page views a month I think when we did it last and we looked last and we calculated it between like our checkout Pages our unbalanced Pages any random landing pages we had um any like freebie Pages we have like half a million page views a month and honestly even that seems a little low but all that to say the average conversion rate of at the Top Line with that much traffic is 0. 5 to 2% so meaning if let's just do easy math on the worse end of some of my pages has a 05% conversion rate those are typically the highest traffic with the coldest people so you have to remember we're spending 10,000 no we're spending $6,000 a day on ads so someone sees an ad they have no idea who I am they have no idea what I'm selling they have no idea what I'm talking about and they click that they would click away and not buy they would be contributing to the 05% contrast that to me dropping a link into my coaching group with my students who know me and love me and enjoy everything that I put out that would might have a 26% conversion rate or 30% conversion rate some of our freebie Pages have a 75% conversion rate so we take all of that traffic about a half a million page views per month um slightly higher maybe but just like in general half a million page views per month and we take all of that and we blend it it's 0. 5 to 2% now that's industry standard 1% especially at that level of volume 1% is like average average marketer average so we're not I think 0.

five is like some of the pages that have 0. five I wish that was better um however that all that all that means is that that's our opportunity like that's our sorry I'm fiddling with my h um that's our opportunity that we can work on but you know what's really interesting and this is where like I'll just share with you guys transparently like man we have fiddled with conversion rate so much and we'll change this thing and we'll change this thing and again like I said we have a very wide range from like five% to like 75 80% depending on what it is there's so many different pages we have and generally what we find is that the initial conversion rate is the initial conversion rate given give or take a little bit but we and maybe this is just a skill that we lack we have yet to find a dramatic increase in conversions now that can mean two things it can mean we just are missing something really big when it comes to Big like could increasing conversions like we fundamentally wrong or could just mean it's it is what like it's not something that most people would fiddle with and we're not missing anything um I would be very interested for those of you guys who are more experienced in the comments I would actually be really interested to hear your thoughts on this um I feel like I've heard it said before that the conversion rate is the conversion rate especially at that level of cold traffic or like semiwarm traffic but I'd be kind of curious to know we're certainly open to but what we found has always worked better for us in our business is just like okay so the conversion rate is at 3% okay that means we need to send 3,000 people to the page to hit our goal and then we send we send 3,000 people like we have been able to we can clearly generate traffic like nobody's business that we can do with our eyes closed or like I'm very confident in our ability to generate traffic um I don't love a 5. 5 to 2% conversion rate I just don't love it um but I don't I also don't know like is that something that like is worth the effort so for those of you guys who happen to be watching who are a little bit more experienced um curious to get your thoughts on that okay so yeah next one is profit margin um like I said that's 60% something I've realized is that your business should not have 60% profit margins it and that has been like again this is data over the last six months that has been very consistent um oh one so 1.

5 P this is why I felt like the traffic was low it's 150,000 page views per month so [Music] over oh okay yeah so it is about so it's about a million yeah so it's lit that's what I literally was like I know I like this is how well I know my numbers I knew that it was right around a million page views that's why okay so yeah it's a so it's with a million page views which is think about that a million page views a million views on a page between all of our Pages the conversion rate is 0. 5 to 2% so clearly we're very good at generating traffic conversion rate is standard it's industry standard one to 2% is considered industry standard all back to the profit margins um it's 60% a business should not have 60% profit margins that's too high what that means is we're not growing fast enough we're not we should be spending more money on ads we should be bringing on team members to help us um 60% profit margin is very very high we could be growing and scaling faster to my goal of 10 million um if we temporarily took home I mean that's insane like so like just to give context um let's just say for example I hit my goal of $10 million right that's my goal for the years like 10 million um that would mean I take home 6 million last year I took home 2 million I made Topline 3. 6 and I took home $2 million in personal take-home income so my and that was last year when we had even less good margins this year we're having even better margins because we're making more money and our costs aren't are somewhat fixed so profit I feel that 60% profit margin is too high I don't see any business having that I mean it's great I'm not complaining I love the check I write myself every month however um I actually think that if I reinvested more in the business we would ultimately grow which is really what I want is I want a bigger business I want to be able to reach more people I want to be able to help more people I want to be able to get my products into the hands of more people um and that could mean hiring more people and spending more on ads like that is what that means so profit margin 60% that's extremely that is like just to give context most businesses are happy with like a a 20 to 30% net profit my net profit just so we're all very very clear here my net profit is 60% I pay myself 60% so if I again just like let's just say I made $100,000 in a month I would net profit and pay myself 60,000 in that month now I'd have to pay 30,000 of that to taxes because I literally have to pay 50% taxes um like it's I'm saying of that 2 million that I made I paid almost a million dollars in taxes last year on my personal take-home income um so but in terms of the business net profit what I pay myself what I take home is 60% it's very high it's like two to three times higher than the average okay Revenue per email subscriber $3 so basically what that means is I mean we have a massive list of like 400,000 people um the I can't remember how we got this number but like the projected Revenue per email subscriber is $3 I think that's very low I think that's like 10 times lower correct me if I'm wrong but I think that's 10 times lower than the average I think I remember somewhere again like this is why it's problematic to get your money like your information off the internet because you have no context into the business um for us though like here's the crazy thing is like we get email addresses for free or we get email addresses for like 10 cents or we maybe that's our problem I don't know we get email addresses for like 50 cents so like if I pay 50 cents for a good email like let's just say it's a good email address I pay 50 cents for an email address I can turn that 50 cents on average spread over 400,000 email addresses I can turn that into $3 I'm 6 Xing my return on ad spend so I'm taking $1 and turning it into $6 so I don't have much commentary on that we haven't focused too much on email marketing because I was focusing on like getting the business to a million dollar run rate and I just didn't do that I didn't worry about emails at all for the first like 12 years of the business um so it's kind of new to us upsell an order bump take rate so um an order bump is um that first offer that you see on the same page as the main offer so like you check out and you got that little thing down towards the bottom and it's like hey would you like to add moreia scripts or Maria's templates check it and then it adds like 50 bucks onto the order um our take rate for that is 60% which is I think pretty decent actually I think that that means like let's say that we have an order for just again for easy math let's say we have an A initial product that's $10 then the order bump is $50 60% of the time we're actually making $60 per order the $10 initial order plus the $50 order buom 60% of the time we're making $60 instead of $10 so it's pretty decent um okay so organic I get this question all the time organic traffic versus PID traffic split so how much is of that traffic that million page views how much of that comes from organic how much of that comes from um pay traffic now we track this meticulously we have the software called hos.

com I'm going to put a link in the description for you it's very sophisticated software it will literally tell me how much I make from my content down to the real down to the Instagram story I literally know how much each individual Instagram story makes me in dollars so that's how I know like I'll tell you right now for every reel I make I make $2,500 it's motivating when you know you're making $2,500 from an Instagram reel or Carousel you make Instagram and Carousel reels and like compounds um so same thing with like our ads I know this ad this specific ad video that I filmed and that Rose uploaded and monitored and optimized made me x amount of dollars so hos. com I highly recommend it I'm going to put a link down below um I can't remember if we have an affiliate for them or not to be honest either way I'm recommending them because that has been a GameChanger for us um okay so here's the split it's Bonkers It's 53% ADS 47% organic and what's really interesting is Rose and I are such a team and so it's like we both are pulling our weight perfectly that I I couldn't believe we just pulled this data about a week ago um and then I like suddenly got the nerve to like film it and share it with you guys um but I couldn't believe it when we because because like on the one hand I thought that I had done a lot more with Organic and then on the other hand I thought she had done so much with ads maybe it was like slightly more ads but 53 ads 4 7 organic basically 5050 I think that's incredible because what that means is that like let's say God forbid our Facebook ad account got shut down or my Instagram account got shut down like that's happened to us before on both accounts where I've had an organic account shut down and I've had it paid ad like it just it just happens and it's very Diversified I would love to see a 333 split where it's like SEO is 33% ads are 33% paid um or organic traffic is 30% but this is where you have to balance diversification with Focus for the first 10 11 years of my business it was 100% organic and 100% on one platform and I get so much push back from that Maria what if your account get Che down it literally did and I would do it I did it again and I would do it again because you're trying to optimize eight things at once and it's not working you got to go all in on one thing and do it well and so that's why I say like be mindful of where you're pouring your focus because I'd rather you whole ass one thing than half ass a bunch of different things okay repeat customer rate um now this is very interesting because this data is low so our I think our overall repeat like spread over a few a period of a few years is like in the 60% range so we actually have a really a six I think my general manager reported something like 65% 66% um of rep customers which is excellent I think like industry standard is like 20 when we pulled this data we wanted a very narrow bit of data which is what percentage of our customers will buy will Reby in a six-month period that's very narrow so you buy a course of maras what percentage is likely to buy again in a six-month period so it's much lower than 66% because with the 66% I think that's like over the that's like over the lifetime of the customer experience like someone might buy who has purchased for me in 2021 might buy something that I put out more recently I still however was very happy with the repeat customer rate even though it was much lower it's 30% of our customers the the industry average I'm going to quickly Google this but I think it's like 20% yeah I Googled it it's 20% like 15 to 20% I'm saying 15% 20% so for us to have repeat customer rates at 30% within a window of 60 of months is I think crazy good which correlates to the last data point that I pulled which is the refund rate the refund rate is 2.